Ethic's

Question 1

Redlining

Answer 1

Refusing to take an application due to the location of the property.

Question 2

Reverse Redlining

Answer 2

Stigmatizing an area because of the risk factors or the area itself, resulting in charging more for the interest rate and fees associated with obtaining the mortgage.

Question 3

Any person that does one of the following is required to be licensed?

Answer 3

• Take or solicit loan application’s
• Negotiate term’s
• Expect compensation on the loan

Question 4

When is an Affiliated Business Disclosure required?

Answer 4

An Affiliated Business Disclosure is required if an MLO is licensed as a real estate agent & loan officer, or if they or their family owns as little as 1% of a third-party company involved in the settlement process.

Question 5

Referral

Answer 5

Anything of value being given or received from a third-party, real estate agent, and or builder